Universal Credit

(asked on 19th October 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the potential effect of rental arrears on the ability of universal credit claimants to gain employment.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 27th October 2021

No such assessments have been made of the potential effect of rent arrears on the ability of claimants to gain employment.

For 2020/21 we are projected to have spent almost £30 billion to support renters with their housing costs. This included a boost of almost £1 billion to the Local Housing Allowance in response to Covid-19, which provided 1.5 million households in the private rented sector with around £600 more in housing support over the year. We have maintained Local Housing Allowance rates at the same cash level for 2021/22.

For those claimants struggling with their single monthly rent payment, and as a result are at risk of financial harm, there are alternative payment arrangements, which in certain circumstances, can allow a claimant to receive more frequent Universal Credit payments.

For those who require additional support with housing costs Discretionary Housing Payments are available and since 2011 we have provided over £1 billion in Discretionary Housing Payments funding. We have allocated a further £140 million for Discretionary Housing Payments for 2021/22 in England and Wales.

We also recognise that some private renters have rent arrears built up as a result of the pandemic and vulnerable households may need additional support. We are therefore providing an additional £65 million, through a one-off top up to the Homelessness Prevention Grant, for local authorities to help vulnerable households with rent arrears to reduce the risk of them being evicted and becoming homeless.

Reticulating Splines